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Home Tech

£3 Billion Legal Action Against Facebook Gets Green Light in London

Business 360 by Business 360
February 16, 2024
in Tech
0
£3 Billion Legal Action Against Facebook Gets Green Light in London

A judge has granted permission for a mass legal action potentially worth £3 billion against Meta, the owner of Facebook. The case, brought by legal academic Dr. Liza Lovdahl Gormsen on behalf of 45 million Facebook users, alleges that the social media giant abused its dominance by compelling users to provide data from non-Facebook products, including Instagram and third-party sites.

However, Meta refutes the claims, stating they “remain entirely without merit” and that they will defend against them vigorously.

The revised claim argues that Facebook’s actions constitute an “unfair bargain” with users, making data sharing with third parties a condition for accessing the platform.

The case, seeking £2.07-3.1 billion in compensation for users who had Facebook accounts between February 2016 and October 2023, is scheduled to be heard at the Competition Appeal Tribunal, with early 2026 identified as the latest possible hearing date.

Meta responded, emphasizing its commitment to providing users with meaningful control over their shared information and investing in tools to enable such control.

The legal action is financed by Innsworth, a company supported by an investment management fund, which has previously funded mass legal actions against companies like Mastercard, Ericsson, and Volkswagen. In 2023, Meta paid $725 million (£583 million) in a privacy case involving Facebook account holders in the US.

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